Title
Insurance and Risk Management Advisory Board Meeting of March 30, 2022.
Body
OPENING:
Chair Juan C. Diaz-Padron opened the meeting. Meeting was called to order at 8:08am. Quorum was reached. Everyone introduced themselves for the record.
MINUTES APPROVAL:
March 15, 2022, Minutes
Motion: Austin Tellam / 2nd Motion: Paul Susz
SECRETARY’S REPORT: None
BOARD MEMBERS REPORTS: None
NEW BUSINESS: None
OLD BUSINESS:
Insurance Renewal Review - Arthur J. Gallagher
(Exhibit 1 - Executive Summary 3.29.20222)
Ms. Elejabarrieta stated in accordance with conversation with Board Chair Mr. Diaz-Padron to commence right away into reviewing renewal premium numbers and then compare the open market to FMIT.
Ms. Perez started off with the review of insurance premiums as indicated on page 3 of Executive Summary. Ms. Perez stated that for the Property renewal premium, the Executive Summary shows a range because it is still a moving target. Ms. Perez stated they are currently restructuring the property program to increase have the 1st layer of coverage from $10 million to $25 million to take advantage of the lower premium rate increase at the 1st layer. The goal is to get the overall premium as close to $1.8 million as possible. Ms. Elejabarrieta advised, if it is determined to go with the open market, they will have a not to exceed number for the Commission. City currently has $50 million in Windstorm coverage and Total Insured Value for all other perils.
Ms. Elejabarrieta advised that the premium quoted for cyber is similar to last year, however, limits have changed to $2 million dollars instead of $5 million dollars. Mr. Diaz-Padron asked if the $5 million limit is obtainable, Ms. Perez advised not as yet, as this has become a very difficult line of coverage. Ms. Perez advised a possible quote from Zurich and AIG are still pending, but anticipates if quoted for up to $5 million it will have a very large premium increase. The $2 million quote doe...
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